Bajaj Auto share buyback: Bajaj Auto, Chambal Fertilisers board of directors will meet on Monday to consider share buyback.
Both Bajaj Auto and Chambal Fertilizers were notified of the meeting and buyback offer on Wednesday, January 3.
Following the announcement, shares of Bajaj Auto rose 5 per cent while those of Chambal Fertilisers fell 3.4 per cent.
On the NSE on Friday, the two-wheeler stock closed at Rs 6,995.90, up 1.07 per cent, while Chambal stock closed at Rs 373.20, down 3.48 per cent.
Bajaj Auto stock buyback
If Bajaj Auto’s board approves the share buyback, this will be the second such buyback by the company in the last two years. The Nifty company, which boasts of Pulsar and Chetak brands, began buyback of shares at Rs 4,600 per share in July 2022. Bajaj Auto’s previous share buyback size was Rs 2,500 crore, representing 9.61% and 8.71% of the company’s total paid-up capital and retained earnings, respectively.
Bajaj Auto stock has delivered a return of over 90% in the last 12 months, higher than the 45% return of the Nifty Auto index. Meanwhile, the broader Nifty has recorded a return of 21% during this period. The stock is currently trading above its 50-day and 200-day simple moving average (SMA), and recent price action has put it in overbought territory. The stock’s MFI and RSI as reported by Trendlyne are 73.4 and 81.8, respectively. Anything above 70 is considered overbought, anything below 30 is oversold.
Meanwhile, Chambal Fertilizers stock underperformed the Nifty with a return of nearly 19% in one year.
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